Primo Water Corporation (Nasdaq:PRMW) today reported financial
results for the second quarter ended June 30, 2017.
Second Quarter 2017 Business
Highlights:
- Net sales more than doubled to a record $74.8 million
- Refill net sales increased over 550% to $44.2 million
- US Exchange same-store unit sales increased 6.2%, the 21st
consecutive quarter exceeding 6%
- Dispenser sales increased 24% to a record $12.5 million
- Record sell-thru of dispenser units of 169,000
(All comparisons above are with respect to the
second quarter ended June 30, 2016)
“We are pleased with our second quarter results,
which were at the top end of our guidance," commented Matt Sheehan,
Primo Water's Chief Executive Officer. "We continue to execute our
growth and integration plans and our acquisition synergies are
ahead of our original estimates. As result of these strong
year-to-date results and outlook for remainder of the year, we are
raising our full-year outlook and our estimated total Glacier
acquisition synergy savings.”
Second Quarter Results
Total net sales more than doubled to
$74.8 million from $34.4 million in the prior year
quarter, with growth in all segments of Refill, Exchange and
Dispensers. Refill net sales increased over six-fold to $44.2
million from $6.7 million in the prior year quarter. The
increase in Refill net sales was primarily due to the inclusion of
Glacier, which was acquired in December 2016. Exchange net
sales increased 3.4% to $18.1 million from $17.5 million in the
prior year quarter, driven by a 6.2% increase in U.S. same-store
unit sales. This is the 21st consecutive quarter of
same-store unit growth exceeding 6%. Dispenser segment net
sales increased 24% to $12.5 million from $10.1 million in the
prior year quarter, due in part to the timing of shipments as well
as strong sell-thru, which was a record 169,000 units in the second
quarter.
Gross margin percentage was 27.7%, compared to
30.3% in the prior year quarter. The change in gross margin
percentage is primarily due to the Glacier acquisition as well as
an increase in lower margin dispenser sales. Selling, general
and administrative expenses were $8.2 million compared to $4.8
million in the prior year quarter. The increase is primarily the
result of the Glacier acquisition. As a percentage of net
sales, SG&A decreased to 11.0% from 13.9% in the prior year
quarter.
Non-recurring costs and acquisition-related
costs included a $0.9 million charge related to the settlement of
the remaining litigation related to the Company’s Exchange
distribution transition. Additionally, there were $2.1
million in costs related to the Glacier acquisition. These
costs were in excess of the Company’s, as it accelerated certain
synergy initiatives. As a result, the Company now believes
that its total synergy savings will be $7.0 million to $8.0 million
by 2019, which is an increase from the original estimate of $6.0
million to $7.0 million.
U.S. GAAP net loss from continuing operations
was $(2.5) million, or $(0.07) per diluted share compared to income
from continuing operations of $2.3 million, or $0.08 per diluted
share, in the prior year quarter, primarily due to an increase in
interest expense, depreciation and amortization expense, and
non-recurring and acquisition-related costs. Adjusted net
income from continuing operations was $2.0 million or $0.06 per
diluted share compared to adjusted net income of $3.2 million, or
$0.11 per diluted share, in the prior year quarter.
Adjusted EBITDA increased 127% to $14.0 million from $6.2
million in the prior year quarter, driven by the increase in net
sales.
2017 Outlook Raised and Q3 Outlook
The Company is raising guidance for the full
year of 2017 and now expects net sales in the range of $283.5
million to $287.5 million, an increase from $282.0 million to
$287.0 million. The Company now expects Adjusted EBITDA in
the range of $54.0 million to $55.5 million, as compared to its
earlier estimate of $53.0 million and $55.0 million.
For the third quarter of 2017, the Company
expects net sales of $76.3 million to $79.3 million and Adjusted
EBITDA of $16.7 million to $17.7 million.
Conference Call and Webcast
The Company will host a conference call to
discuss these matters at 4:30 p.m. ET today, August 8, 2017.
Participants from the Company will be Matt Sheehan, President and
Chief Executive Officer, and Mark Castaneda, Chief Financial
Officer. The call will be broadcast live over the Internet hosted
at the Investor Relations section of Primo Water's website at
www.primowater.com, and will be archived online through August 22,
2017. In addition, for the live broadcast listeners may dial
(866) 712-2329 in North America, and international listeners
may dial (253) 237-1244.
About Primo Water Corporation
Primo Water Corporation (Nasdaq:PRMW) is North
America’s leading single source provider of multi-gallon purified
bottled water, self-service refill water and water dispensers sold
through major retailers throughout the United States and
Canada. For more information and to learn more about Primo
Water, please visit our website at www.primowater.com.
Forward-Looking Statements
Certain statements contained herein are not
based on historical fact and are "forward-looking statements"
within the meaning of the applicable securities laws and
regulations. These statements include the Company’s financial
guidance and those related to the Company’s growth and integration
plans and its realization of acquisition related synergies.
These statements can otherwise be identified by the use of words
such as "anticipate," "believe," "could," "estimate," "expect,"
"feel," "forecast," "intend," "may," "plan," "potential,"
"project," “seek,” "should," "would,” “will,” and similar
expressions intended to identify forward-looking statements,
although not all forward-looking statements contain these
identifying words. Owing to the uncertainties inherent in
forward-looking statements, actual results could differ materially
from those stated herein. Factors that could cause actual results
to differ materially from those in the forward-looking statements
include, but are not limited to, adverse changes in the Company's
relationships with its independent bottlers, distributors and
suppliers, the loss of major retail customers of the Company or the
reduction in volume or change in timing of purchases by major
retail customers, lower than anticipated consumer and retailer
acceptance of and demand for the Company's products and services,
the entry of a competitor with greater resources into the
marketplace, competition and other business conditions in the water
and water dispenser industries in general, the Company’s
experiencing product liability, product recall or higher than
anticipated rates of sales returns associated with product quality
or safety issues, the loss of key Company personnel, dependence on
key management information systems, changes in the regulatory
framework governing the Company's business, the Company's inability
to efficiently expand operations and capacity to meet growth, the
Company's inability to develop, introduce and produce new product
offerings within the anticipated timeframe or at all, the Company’s
inability to comply with its covenants in its credit facility,
significant liabilities or costs associated with litigation or
other legal proceedings, general economic conditions, the possible
adverse effects that decreased discretionary consumer spending may
have on the Company’s business, difficulties with the successful
integration and realization of the anticipated benefits and
synergies from the Glacier Water acquisition, including
incorporation of internal controls and critical information
technology systems such as management information systems and
related tools, failure to manage our expanded operations following
the Glacier Water acquisition, the incurrence of costs related to
the Glacier Water acquisition, changes to the Company’s board of
directors and management in connection with the Glacier Water
acquisition, the impact of the loss or non-retention of certain key
personnel after the Glacier Water acquisition, the termination or
renegotiation of agreements with customers, suppliers and other
business partners in connection with the Glacier Water acquisition,
the possibility that the Company’s financial results following the
Glacier Water acquisition may differ materially from the unaudited
pro forma financial statements that were previously made available,
the restrictions imposed upon our business as a result the
restrictive covenants contained in our credit agreements, the
possibility that we may fail to generate sufficient cash flow to
service our debt obligations, and the negative effects that global
capital and credit market issues may have on our liquidity, the
costs of our borrowing and our operations of our suppliers,
bottlers, distributors and customers as well as other risks
described more fully in the Company's filings with the Securities
and Exchange Commission, including its Annual Report on Form 10-K
filed on March 16, 2017 and its subsequent filings under the
Securities Exchange Act of 1934. Forward-looking statements reflect
management's analysis as of the date of this press release. The
Company does not undertake to revise these statements to reflect
subsequent developments, other than in its regular, quarterly
earnings releases or as otherwise required by applicable securities
laws.
Use of Non-U.S. GAAP Financial Measures
To supplement its financial statements, the
Company provides investors with information related to adjusted
EBITDA and adjusted net income from continuing operations, which
are not financial measures calculated in accordance with generally
accepted accounting principles in the United States (“U.S.
GAAP”). Adjusted EBITDA is calculated as (loss) income
from continuing operations before depreciation and amortization;
interest expense, net; provision for income taxes; non-cash change
in fair value of warrant liability; non-cash stock-based
compensation expense; non-recurring and acquisition-related costs;
and (gain) loss on disposal and impairment of property and
equipment and other.
Adjusted net income from continuing operations
is defined as (loss) income from continuing operations less the
provision for income taxes, change in fair value of the warrant
liability, non-cash stock-based compensation expense, non-recurring
and acquisition-related costs, and (gain) loss on disposal and
impairment of property and equipment.
The Company believes these non-U.S. GAAP
financial measures provide useful information to management and
investors regarding certain financial and business trends relating
to the Company’s financial condition and results of
operations. Management uses these non-U.S. GAAP financial
measures to compare the Company's performance to that of prior
periods for trend analyses and planning purposes. These
non-U.S. GAAP financial measures are also presented to the
Company’s board of directors and adjusted EBITDA is used in its
credit agreements.
Non-U.S. GAAP measures should not be considered
a substitute for, or superior to, financial measures calculated in
accordance with U.S. GAAP. These non-U.S. GAAP measures
exclude significant expenses that are required by U.S. GAAP to be
recorded in the Company's financial statements and are subject to
inherent limitations.
FINANCIAL TABLES TO FOLLOW
|
Primo Water Corporation |
Consolidated Statements of Operations |
(Unaudited; in thousands, except per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
Net
sales |
|
$ |
74,817 |
|
|
$ |
34,385 |
|
|
$ |
135,554 |
|
|
$ |
66,681 |
|
Operating costs and
expenses: |
|
|
|
|
|
|
|
|
Cost of
sales |
|
|
54,079 |
|
|
|
23,968 |
|
|
|
96,892 |
|
|
|
46,915 |
|
Selling,
general and administrative expenses |
|
|
8,219 |
|
|
|
4,778 |
|
|
|
18,764 |
|
|
|
9,807 |
|
Non-recurring and acquisition-related costs |
|
|
2,977 |
|
|
|
232 |
|
|
|
7,425 |
|
|
|
438 |
|
Depreciation and amortization |
|
|
6,820 |
|
|
|
2,421 |
|
|
|
13,211 |
|
|
|
4,829 |
|
(Gain)
loss on disposal and impairment of property |
|
|
|
|
|
|
|
|
and
equipment |
|
|
(11 |
) |
|
|
219 |
|
|
|
(18 |
) |
|
|
412 |
|
Total
operating costs and expenses |
|
|
72,084 |
|
|
|
31,618 |
|
|
|
136,274 |
|
|
|
62,401 |
|
Income
(loss) from operations |
|
|
2,733 |
|
|
|
2,767 |
|
|
|
(720 |
) |
|
|
4,280 |
|
Interest
expense, net |
|
|
5,022 |
|
|
|
489 |
|
|
|
10,024 |
|
|
|
959 |
|
Change
in fair value of warrant liability |
|
|
– |
|
|
|
– |
|
|
|
3,220 |
|
|
|
– |
|
(Loss)
income from continuing operations before income taxes |
|
|
(2,289 |
) |
|
|
2,278 |
|
|
|
(13,964 |
) |
|
|
3,321 |
|
Provision for income taxes |
|
|
186 |
|
|
|
– |
|
|
|
373 |
|
|
|
– |
|
(Loss)
income from continuing operations |
|
|
(2,475 |
) |
|
|
2,278 |
|
|
|
(14,337 |
) |
|
|
3,321 |
|
Loss
from discontinued operations |
|
|
– |
|
|
|
(13 |
) |
|
|
– |
|
|
|
(25 |
) |
Net
(loss) income |
|
$ |
(2,475 |
) |
|
$ |
2,265 |
|
|
$ |
(14,337 |
) |
|
$ |
3,296 |
|
|
|
|
|
|
|
|
|
|
Basic (loss) earnings
per common share: |
|
|
|
|
|
|
|
|
(Loss)
income from continuing operations |
|
$ |
(0.07 |
) |
|
$ |
0.08 |
|
|
$ |
(0.44 |
) |
|
$ |
0.12 |
|
Loss from
discontinued operations |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
Net
(loss) income |
|
$ |
(0.07 |
) |
|
$ |
0.08 |
|
|
$ |
(0.44 |
) |
|
$ |
0.12 |
|
|
|
|
|
|
|
|
|
|
Diluted (loss) earnings
per common share: |
|
|
|
|
|
|
|
|
(Loss)
income from continuing operations |
|
$ |
(0.07 |
) |
|
$ |
0.08 |
|
|
$ |
(0.44 |
) |
|
$ |
0.11 |
|
Loss from
discontinued operations |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
Net
(loss) income |
|
$ |
(0.07 |
) |
|
$ |
0.08 |
|
|
$ |
(0.44 |
) |
|
$ |
0.11 |
|
|
|
|
|
|
|
|
|
|
Weighted average shares
used in computing |
|
|
|
|
|
|
|
|
(loss) earnings per
share: |
|
|
|
|
|
|
|
|
Basic |
|
|
33,463 |
|
|
|
28,826 |
|
|
|
32,865 |
|
|
|
27,644 |
|
Diluted |
|
|
33,463 |
|
|
|
30,101 |
|
|
|
32,865 |
|
|
|
29,656 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primo Water Corporation |
Segment Information |
(Unaudited; in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
Segment net
sales |
|
|
|
|
|
|
|
|
Refill |
|
$ |
44,163 |
|
|
$ |
6,748 |
|
|
$ |
80,528 |
|
|
$ |
13,157 |
|
Exchange |
|
|
18,121 |
|
|
|
17,533 |
|
|
|
34,866 |
|
|
|
33,502 |
|
Dispensers |
|
|
12,533 |
|
|
|
10,104 |
|
|
|
20,160 |
|
|
|
20,022 |
|
Other |
|
|
|
|
|
|
|
|
Total
net sales |
|
$ |
74,817 |
|
|
$ |
34,385 |
|
|
$ |
135,554 |
|
|
$ |
66,681 |
|
|
|
|
|
|
|
|
|
|
Segment income (loss) from operations |
|
|
|
|
|
|
|
|
Refill |
|
$ |
11,497 |
|
|
$ |
3,311 |
|
|
$ |
20,206 |
|
|
$ |
6,317 |
|
Exchange |
|
|
5,381 |
|
|
|
5,404 |
|
|
|
10,533 |
|
|
|
10,128 |
|
Dispensers |
|
|
1,108 |
|
|
|
785 |
|
|
|
1,686 |
|
|
|
1,483 |
|
Corporate |
|
|
(5,467 |
) |
|
|
(3,861 |
) |
|
|
(12,527 |
) |
|
|
(7,969 |
) |
Non-recurring and acquisition-related costs |
|
|
(2,977 |
) |
|
|
(232 |
) |
|
|
(7,425 |
) |
|
|
(438 |
) |
Depreciation and amortization |
|
|
(6,820 |
) |
|
|
(2,421 |
) |
|
|
(13,211 |
) |
|
|
(4,829 |
) |
Gain
(loss) on disposal and impairment of |
|
|
|
|
|
|
|
|
property
and equipment |
|
|
11 |
|
|
|
(219 |
) |
|
|
18 |
|
|
|
(412 |
) |
|
|
$ |
2,733 |
|
|
$ |
2,767 |
|
|
$ |
(720 |
) |
|
$ |
4,280 |
|
|
|
|
|
|
|
|
|
|
Primo Water Corporation |
Condensed Consolidated Balance Sheets |
(Unaudited; in thousands, except par value data) |
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and
cash equivalents |
|
$ |
4,502 |
|
|
$ |
15,586 |
|
Accounts
receivable, net |
|
|
17,891 |
|
|
|
14,121 |
|
Inventories |
|
|
7,487 |
|
|
|
6,182 |
|
Prepaid
expenses and other current assets |
|
|
3,396 |
|
|
|
3,086 |
|
Total current
assets |
|
|
33,276 |
|
|
|
38,975 |
|
|
|
|
|
|
Bottles, net |
|
|
4,468 |
|
|
|
4,152 |
|
Property
and equipment, net |
|
|
104,499 |
|
|
|
100,331 |
|
Intangible assets, net |
|
|
147,075 |
|
|
|
149,457 |
|
Goodwill |
|
|
91,994 |
|
|
|
91,709 |
|
Investment in Glacier securities ($3,800 available-for-sale, at
fair value) |
|
|
6,429 |
|
|
|
6,408 |
|
Other assets |
|
|
553 |
|
|
|
353 |
|
Total assets |
|
$ |
388,294 |
|
|
$ |
391,385 |
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts
payable |
|
$ |
21,440 |
|
|
$ |
13,788 |
|
Accrued
expenses and other current liabilities |
|
|
14,661 |
|
|
|
16,922 |
|
Current
portion of long-term debt and capital leases |
|
|
4,008 |
|
|
|
2,183 |
|
Total
current liabilities |
|
|
40,109 |
|
|
|
32,893 |
|
|
|
|
|
|
Long-term debt and capital leases, net of current portion and debt
issuance costs |
|
|
270,620 |
|
|
|
270,264 |
|
Deferred
tax liability, net |
|
|
13,979 |
|
|
|
13,607 |
|
Warrant
liability |
|
|
– |
|
|
|
8,180 |
|
Other
long-term liabilities |
|
|
2,051 |
|
|
|
2,069 |
|
Total
liabilities |
|
|
326,759 |
|
|
|
327,013 |
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
Stockholders’
equity: |
|
|
|
|
Preferred
stock, $0.001 par value - 10,000 shares authorized, |
|
|
|
|
none
issued and outstanding |
|
|
– |
|
|
|
– |
|
Common
stock, $0.001 par value - 70,000 shares authorized, |
|
|
|
|
29,845
and 29,305 shares issued and outstanding |
|
|
|
|
at June
30, 2017 and December 31, 2016, respectively |
|
|
30 |
|
|
|
29 |
|
Additional paid-in capital |
|
|
325,521 |
|
|
|
325,779 |
|
Common
stock warrants |
|
|
18,892 |
|
|
|
7,492 |
|
Accumulated deficit |
|
|
(281,731 |
) |
|
|
(267,393 |
) |
Accumulated other comprehensive loss |
|
|
(1,177 |
) |
|
|
(1,535 |
) |
Total stockholders’
equity |
|
|
61,535 |
|
|
|
64,372 |
|
Total liabilities and
stockholders’ equity |
|
$ |
388,294 |
|
|
$ |
391,385 |
|
|
|
|
|
|
Primo Water Corporation |
Consolidated Statements of Cash Flows |
(Unaudited; in thousands) |
|
|
|
|
|
Six Months Ended June
30, |
|
|
2017 |
|
|
|
2016 |
|
Cash
flows from operating activities: |
|
|
|
Net
(loss) income |
$ |
(14,337 |
) |
|
$ |
3,296 |
|
Less:
Loss from discontinued operations |
|
– |
|
|
|
(25 |
) |
(Loss)
income from continuing operations |
|
(14,337 |
) |
|
|
3,321 |
|
Adjustments to reconcile net (loss) income to net cash |
|
|
|
provided
by operating activities: |
|
|
|
Depreciation and amortization |
|
13,211 |
|
|
|
4,829 |
|
(Gain)
loss on disposal and impairment of property and equipment |
|
(18 |
) |
|
|
412 |
|
Stock-based compensation expense |
|
3,678 |
|
|
|
1,046 |
|
Non-cash
interest (income) expense |
|
(34 |
) |
|
|
55 |
|
Change in
fair value of warrant liability |
|
3,220 |
|
|
|
– |
|
Deferred
income tax expense |
|
373 |
|
|
|
– |
|
Realized
foreign currency exchange loss (gain) and other, net |
|
112 |
|
|
|
(172 |
) |
Changes
in operating assets and liabilities: |
|
|
|
Accounts
receivable |
|
(3,845 |
) |
|
|
(4,708 |
) |
Inventories |
|
(1,301 |
) |
|
|
(1,290 |
) |
Prepaid
expenses and other assets |
|
(587 |
) |
|
|
(337 |
) |
Accounts
payable |
|
7,686 |
|
|
|
5,305 |
|
Accrued
expenses and other liabilities |
|
(3,155 |
) |
|
|
(675 |
) |
Net cash
provided by operating activities |
|
5,003 |
|
|
|
7,786 |
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
Purchases
of property and equipment |
|
(9,089 |
) |
|
|
(5,423 |
) |
Purchases
of bottles, net of disposals |
|
(1,373 |
) |
|
|
(1,329 |
) |
Proceeds
from the sale of property and equipment |
|
27 |
|
|
|
8 |
|
Additions
to intangible assets |
|
(100 |
) |
|
|
(36 |
) |
Net cash used in
investing activities |
|
(10,535 |
) |
|
|
(6,780 |
) |
|
|
|
|
Cash
flows from financing activities: |
|
|
|
Borrowings under prior Revolving Credit Facility |
|
– |
|
|
|
20,900 |
|
Payments
under prior Revolving Credit Facility |
|
– |
|
|
|
(20,900 |
) |
Borrowings under Revolving Credit Facility |
|
1,000 |
|
|
|
– |
|
Payments
under Revolving Credit Facility |
|
(1,000 |
) |
|
|
– |
|
Term loan
and capital lease payments |
|
(2,012 |
) |
|
|
(143 |
) |
Stock
option and employee stock purchase activity and other, net |
|
(3,290 |
) |
|
|
(1,177 |
) |
Debt
issuance costs and other |
|
(249 |
) |
|
|
– |
|
Net cash used in
financing activities |
|
(5,551 |
) |
|
|
(1,320 |
) |
|
|
|
|
Cash used in operating
activities of discontinued operations |
|
– |
|
|
|
(52 |
) |
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents |
|
(1 |
) |
|
|
97 |
|
Net decrease in cash
and cash equivalents |
|
(11,084 |
) |
|
|
(269 |
) |
Cash and cash
equivalents, beginning of year |
|
15,586 |
|
|
|
1,826 |
|
Cash and cash
equivalents, end of period |
$ |
4,502 |
|
|
$ |
1,557 |
|
|
|
|
|
Primo Water Corporation |
Non-GAAP EBITDA and Adjusted EBITDA
Reconciliation |
(Unaudited; in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
|
2017 |
|
|
|
2016 |
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
(Loss) income from
continuing operations |
|
$ |
(2,475 |
) |
|
$ |
2,278 |
|
$ |
(14,337 |
) |
|
$ |
3,321 |
Depreciation and amortization |
|
|
6,820 |
|
|
|
2,421 |
|
|
13,211 |
|
|
|
4,829 |
Interest
expense, net |
|
|
5,022 |
|
|
|
489 |
|
|
10,024 |
|
|
|
959 |
Provision for income taxes |
|
|
186 |
|
|
|
– |
|
|
373 |
|
|
|
– |
EBITDA |
|
|
9,553 |
|
|
|
5,188 |
|
|
9,271 |
|
|
|
9,109 |
Change in
fair value of warrant liability |
|
|
– |
|
|
|
– |
|
|
3,220 |
|
|
|
– |
Non-cash,
stock-based compensation expense |
|
|
1,342 |
|
|
|
486 |
|
|
3,678 |
|
|
|
1,046 |
Non-recurring and acquisition-related costs |
|
|
2,977 |
|
|
|
232 |
|
|
7,425 |
|
|
|
438 |
Loss on
disposal and impairment of property and equipment and other |
|
|
92 |
|
|
|
257 |
|
|
149 |
|
|
|
491 |
Adjusted
EBITDA |
|
$ |
13,964 |
|
|
$ |
6,163 |
|
$ |
23,743 |
|
|
$ |
11,084 |
|
|
|
|
|
|
|
|
|
Primo Water Corporation |
Adjusted Net (Loss) Income From Continuing Operations
Reconciliation |
(Unaudited; in thousands, except per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
|
2017 |
|
|
|
2016 |
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
(Loss) income from
continuing operations |
|
$ |
(2,475 |
) |
|
$ |
2,278 |
|
$ |
(14,337 |
) |
|
$ |
3,321 |
Provision for income taxes |
|
|
186 |
|
|
|
– |
|
|
373 |
|
|
|
– |
(Loss)
income from continuing operations before income taxes |
|
|
(2,289 |
) |
|
|
2,278 |
|
|
(13,964 |
) |
|
|
3,321 |
Change in
fair value of warrant liability |
|
|
– |
|
|
|
– |
|
|
3,220 |
|
|
|
– |
Non-cash,
stock-based compensation expense |
|
|
1,342 |
|
|
|
486 |
|
|
3,678 |
|
|
|
1,046 |
Non-recurring and acquisition-related costs |
|
|
2,977 |
|
|
|
232 |
|
|
7,425 |
|
|
|
438 |
(Gain)
loss on disposal and impairment of |
|
|
|
|
|
|
|
|
property
and equipment |
|
|
(11 |
) |
|
|
219 |
|
|
(18 |
) |
|
|
412 |
Adjusted net income
from continuing operations |
|
$ |
2,019 |
|
|
$ |
3,215 |
|
$ |
341 |
|
|
$ |
5,217 |
|
|
|
|
|
|
|
|
|
Adjusted earnings from
continuing operations per share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.06 |
|
|
$ |
0.11 |
|
$ |
0.01 |
|
|
$ |
0.19 |
Diluted |
|
$ |
0.06 |
|
|
$ |
0.11 |
|
$ |
0.01 |
|
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
Weighted average shares
used in computing earnings per share: |
|
|
|
|
|
|
|
|
Basic |
|
|
33,463 |
|
|
|
28,826 |
|
|
32,865 |
|
|
|
27,644 |
Diluted |
|
|
33,463 |
|
|
|
30,101 |
|
|
32,865 |
|
|
|
29,656 |
|
|
|
|
|
|
|
|
|
Contact:
Primo Water Corporation
Mark Castaneda, Chief Financial Officer
(336) 331-4000
ICR Inc.
Katie Turner
(646) 277-1228
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